Indian Economy have currently Denominations of Rs 1,2,5,10,50,100 and 2000. as we all know Rs 500 and 1000 is now recalled by Indian Government.
Their are several pros and Cons on this Decision.
Mr. Prime Minister planned it very well however was not able to get it executed as expected and so oppositions are not leaving any stone upturned to propaganda the issue,
as everyone patience is now on the boiling point so the decision seems to be ebb. However its effects will be seen in long term.
we have done some analysis on Demonetisation of Rs 500 and 1000 Rs Note.
Benefits
All the black money kept unaccounted is now flourishing out:
a) Getting deposited in banks which leads to get that money in circulation.
b) As Jan Dhan Yojna was already successful so now at least 1 member in a family have a bank account so every family will know move towards bank for keeping money and start doing transactions with the banks
c) Since now New Notes are printed with new securities and paper all the old fake currency will automatically get scrapped.
d) All those Big fishes who tend to have bulk amount of black money with them are in huge problem and left with limited options.
e) Though Economic growth expectation is now reduced to 5.8 % but from next year economic growth can touch double digit as economy will stabilise within next 6 Months.
f) Usage of Online Transactions and digital money is now increased.
Losses:
Since Indian Economy 12% GDP is on Cash so everyone needs some cash for their daily needs and this is what getting hampered most.
People are standing in line which is wasting Indians productive time.
Due to lack of proper management some people are getting badly affected like Marriages and Farmers.
Conclusion:
In every decision cost to return should be minimum and if Modi Govt. fix the issued within 31st December then it is very good decision for the better future of the Nation, people can suffer for a while but if more time is taken then it is a big big failure of the Govt,
